Categorization of private apartments in Belgrade

Definition of apartment

Apartment is a part of flat or house in which the tourists can stay, sleep, eat or independently cook their food. There are various apartments according size and quality so some kind of categorization and classifications is necessary.

Procedure of categorization

Apartments can have from one to four stars, depending on the number of points obtained in the evaluation according to the standards prescribed by the competent authorities.

For categorization this elements are important:

• the external appearance

More points are dedicated to apartments build with high-quality materials. Renovated buildings have more value than old buildings.

• parking lots and garages

Parking in Belgrade, can be a very big problem. Apartments with 4 and 5 star must have parking place at the building in which the apartment is located. Other categories of accommodation do not have to have a secured parking for guests. However, in Belgrade you will find a large number of apartments that offer this possibility, whether it's a parking place in front of or possibility of parking in a nearby garage.

To have garage is very important for private apartment

• Access to apartments

Access to the apartment entrance and must have secured outdoor lighting. In addition, for two or more stars, entrance to the accommodation unit must be from a separate corridor or hallway.

• guests receiving

Person who speaks at least one foreign language should receive guests, and it is very important to be very nice, kind and friendly person. “Guests are always right” should be motto.

• Size and equipment

Size

The minimum area that flat must have in order to be categorized as an apartment is 26 m². From 19 m² to 25 m² is classified as studio.

Equipment

Equipment and feature of apartments are regulated by some standards and requirements: number of beds and pillows, number of outlets, techniques (air conditioning, TV, Internet), to details such as a sewing kit and a printed notification of the facilities and services which are available to guests.

In the kitchen every apartment should have: sinks with hot water, fridge, stove, extractor fan, kitchen cabinets, dishes and pans, cups, plates and other accessories, dining table and chairs according to the number of beds, dustbins, tablecloth, napkins ...

In the bathroom must be a tub or shower cabin with curtain. Apartments with two or more stars have to provide additional hair-dryer, shampoo and bath, extra towels and toiletries.

Apartments who want to get three or four star, would have to provide: change of linen upon request, first aid kit, iron, accommodation for pets

• Quality of furniture and equipment in the flat

There are three quality categories:

Quality of furniture in the apartment can significantly contribute to its value

–        standard with one to three stars - have standard equipment, for apartments

–        first class  4 stars - apartment is equipped with furniture of small series and aligned with the interior

–        exclusive 5 stars - have luxurious furniture which brings additional points in the evaluation of apartments

Apartments in Belgrade generally are luxuriously furnished, and there is an obvious effort by their owners to offer good service to the visitors in order to be satisfied and have positive impressions. Of course the price depends of classification, if apartment is on higher category and has more stars, the price will be higher

Why to rent apartment in Belgrade?

Renting apartments, flats and other real estate property in Belgrade has always been relatively lucrative job and a source of additional income. Belgrade is one of the top 10 European destinations; business, economic and academic center of Serbia and region, lot of tourist, students, young people looking for work, tourists, business people and other visitors are arriving every day, so there is huge demand for accommodation capacities.  There are several hotels, a lot is being built or plan to built, but new category of accommodation capacity is emerging - private apartments for short stay.

Owners of empty flats instead of holding them empty and make unnecessary costs, decide to rent them. They are investing money to equip and to enable them for offering quality accommodation.

The risks and costs of the owners

The real estate market in Belgrade in recent times experience declining prices, both in sales and in renting. On the other side utility prices and cost for maintenance have rising. Owners cannot keep their flats empty because the cost are more and more expensive, they have difficulty to sell - prices are too low, it is hard to find good tenant on long run who won’t destroy apartment and be on time with the rent. The most expensive apartment is the empty apartment.

Therefore, in recent years many people decide to change model of renting. The owners do not look for tenants in the long term, rather than a flat rented as an apartment for short stay - a day, a week or a month. This form of accommodation is becoming increasingly popular, especially between domestic and foreign tourist and business people. They come in Belgrade for short stay to accomplish some business or visit relatives or business partners, visit faculty, school, to accomplish some duty in the ministry, have medical examination, visit some cultural or sport manifestation, etc. This sort of visitors is willing to pay for good, peaceful and comfort accommodation in the center of Belgrade.

Convert ordinary flats in an apartment for renting

A.    First step for owners is to make renovation and decoration and adopted their flat to apartment for renting.

To begin with, it should be invest in equipment:

–       fitted kitchen with oven, refrigerator, small electrical appliances, dishes and cutlery, to be able to prepare food their self

–       fitted toilets with modern and new bathtubs and showers, washing machine and clothes drier

–       buy good furniture, beds, sofas, cabinets, etc

–       buy linens and towels,

–       new flat TV with cable or satellite channels

–       computer with fast broadband internet and Wi-Fi connection

–       air conditioning for summer

–       heating for the winter

–       parking place can be a big plus

–       provide guests with hair dryer and iron, toaster or microwave oven

B.    Second step - advertise and promotions of property in order to attract clients. Internet, Google +, Facebook, Twitter, Instagram and other social networks can help. In the beginning, it may be best to contact companies that are experienced in internet marketing.

C.     Third step After each group of guests, owners should take care of the apartment and prepare for the next group. The apartments must be cleaned, linen be changed, the trash throw out, broken things replaced, etc. The guest gives their grades and reviews so reputation is very important

Prices of renting

If apartment is on a good location, the price is unlikely to be less than 40 Euros per day. If the flat is full with guests an average of 20 days per month, it is easy to calculate - two average Serbian salaries. Keep in mind that Belgrade is a city that abounds in events (concerts, spot matches, fairs), as well as in growing number of tourists who come here during the New Year, Easter, and other  holidays. Then rates are going up, so calculation is even more favorable.

Our advice for real estate owners

Take advantage of your property in the best way. Activate it, let it work for you, be with entrepreneurial spirit - may it turn into a great business idea.